Contracts Bar Exam Outline

﻿Contracts
IS THERE A VALID CONTRACT
1) Was a Contract Formed?
2) Is the Contract Validly Enforceable?
1. Offer
2. Acceptance
3. Consideration
4. In Writing
Contract is Void
Contract is Voidable
Making an Offer
Methods of Acceptance
Rule: Must have bargained for exchange.
 may be an exchange of promises.
Illusory: only one party is bound to perform.
Past Consideration: not consideration, But may= implied in fact K. EXCEPTION: Promissory Estoppel (reasonably relied to their detriment) Statute of Frauds
1. Marriage
2. Year or longer services contract
3. Lease for > $1000
4. Land
5. Executor or Adminsitror
6. Goods: >$500.
7. Suretyship
Exception: main purpose to benefit guarantor
8. MASS: promise to make or enforce a will must be in writing. Requirement:
1. Writing signed by ∆
2. all material terms
UCC: must have quantity term
EXCEPTION: merchants where one receives signed writing and fails to respond in 10 days. Part Performance: 2 of 3
1. improvement to land
Payment
2. Possession
1. Illegality
2. Absence of Consideration
1. Mutual Mistake: 1) basic assumption; 2) material effect; 3) party seeking avoidance did not assume the risk. 2. Duress: 1) economic; 2) no reasonable alternative;
3. Ambiguity: consider awareness of ambiguity
4. Unconscionability: unfair surprise, oppressive terms
5. Nondisclosure: concealment and fiduciary like relationship 6. Misrepresentation: false statement before the contract that induces it.

Requirements:
1) promise
2) undertaking or commitment
3) definite and certain terms (capable of being enforced)
4) reasonably understood under the circumstances as an offer. UCC Contracts: Must include a quantity term or be an output or requirements contract. Sale of Land: must
1) Identify the land and
2) Include price terms.
1.As provided by Offer
2. Express Acceptance: must be unequivocal.
2. Conduct a reasonable person would conclude was an...

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Promise Principle: All promises are enforceable
Ex: Hurley: Doctor made no promise, therefore no contract.
Promises create expectations that should be enforced.
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People plan around wholly executory contracts and use them for risk allocation.
Moral obligation to enforce promises.
Reliance + Promise and Benefit: Promise alone is never enough to create a contract.
Ex: Atiyah: Criticizes Contracts as Promise principle
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Common law majority Rule
UCC Article 1 & 2 (transaction in goods)- usually same as majority common law except in a few areas
Significant minority rules- will be on test and are there to fool you. DO NOT CHOOSE!
34 Contracts MCQ
* 60% Offer and Acceptance (6-8 Qs), Conditions (6-8Qs) and Remedies- UCC and Common law (6-8 Qs)
* 40% - 1-2Qs on the following areas
* Consideration
* 3rd party beneficiaries
* Assignments and delegations
* Statute of Frauds
* Parol Evidence Rule
* Discharge of Duties- Impossibility, frustration
* ¼ of contract Qs will deal with UCC (sales and transactions of goods)
Understand terminology
Offeree, offeror, promisee, promissor, assignor, assignee , etc.
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* Express: formed by statements of the parties- say or write promises that form contract
* Implied:
* Implied in fact (implied): Requires conduct of one or both of the parties to form contract. Contractor goes to wrong house and redoes driveway. Owner watches. Contractor submits bill to owner and owner states they did not ask for it to be done. But because of conduct (owner not stopping) contract was formed. (Ex: Woman brings older daughter to dance, teacher and mom allow younger daughter to dance with them every day—implied in fact contract mother liable to pay for...

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Professor Jean Powers
Cited to Crandall & Whaley’s Contracts, 4th Edition
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A) Introduction (227)
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1. Contract Remedies (Chapter One)
What is a contract?- promise or set of promises, for breach of which the law gives a remedy or the performance of which the law recognizes as a duty.
Types of contracts-
a. express: formed by language, oral or written
b. implied: formed by manifestations of assent other than oral or written language; by conduct.
c. quasi: not contracts at all, construed by courts to avoid unjust enrichment, by permitting plaintiff to bring an action in restitution to recover the amount of the benefit conferred on defendant.
Critical Elements of a Contract:
a. promise- undertaking or commitment that something shall or shall not be done
b. exchange-something the law recognizes as value is exchanged
c. enforcement-the law sanctions such promissory exchanges by putting coercive machinery behind them.
d. mutual assent “meeting of the minds”
2. The Agreement Process (Chapter Two)
INTENTION TO BE LEGALLY BOUND
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Agreement: a manifestation of mutual assent on the part of 2 or more
Bargain: an agreement to exchange promises or to exchange a promise for a performance or the exchange performances
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...respond within a week, implies that he sent Bob an offer to lease Oceanhaven for the season.
Was there an indirect revocation of the offer on February 4th?
The knowledge by an offeree from a reliable source that offeror can not perform. It requires acts inconsistent with the contract.
The facts assert that Bob learned about Oceanhaven no longer being available on February 4th. Further, Bob heard this information from his real estate agent. Since his real estate agent is probably in the business of knowing what properties are available for season rentals, this appears to be a reliable source. Moreover, the news the real estate person shared was that Oceanhaven was rented to someone else for 6 months, effective March 1st. Accordinly, Oceanhaven would no longer be available from May through June. Because of this, the offeror can no longer perform. Lastly, since the person who is renting Oceanhave is not affiliated with Bob, it is reasonable to say that the acts are inconsistent with the terms of the offer.
Did Bob accept Alex’s offer on February 5th?
An acceptance is an unequivocal assent to the terms of the offer. A bilateral contract requires a return promise while a unilateral contract requires complete performance.
According to the facts, Bob wrote Alex on February 5th stating “I’ll take Oceanhaven per your leeter of February 1st. Being that Bob accepted Alex’s terms as-is, Bob unequivocally assented....